As Bitcoin navigates the present bear market, Ruchir Sharma, head of investment management company Rockefeller International, has voiced optimism over Bitcoin’s future.
During an interview with CoinDesk TV on July 8, Sharma predicted that Bitcoin ‘would make a return’ but stressed that the cryptocurrency market must cleanse itself of weak assets before rising again.
Sharma said that Federal Reserve actions have a negative impact on Bitcoin and cryptocurrencies in general, but he claimed that the present decline is part of the overall upward trend. The former top strategist of Morgan Stanley stated that the current growth of cryptocurrencies has been a bubble and that Bitcoin would stand out after the bubble collapses.
Bitcoin’s future price movement
Sharma also likened the crypto market to the dot-com boom, which led to the rise of companies such as Amazon.
According to Sharma, Bitcoin is a fundamentally sound concept with the ability to challenge the U.S. dollar’s hegemony. He added that the possibility for Bitcoin to emerge as a leading global currency is currently there.
However, he noted that the next six months would be essential for Bitcoin’s future, particularly in light of the monetary policies implemented by countries. In this paragraph, Sharma ruled out the possibility of a Bitcoin price bottom, stating that the cryptocurrency’s value would fall lower before recovering.
“I’m not inclined to name the bottom of the Bitcoin and cryptocurrency markets just yet. “The U.S. bear market regime, which drives global risk appetite, is still very much in effect,” he noted.
Bitcoin smashes beyond $21,000
Bitcoin continued to make modest advances over the critical $20,000 threshold as he spoke. At the time of publication, the leading cryptocurrency was trading at $21,270 after 24 hours of gains of less than 1 percent.
In a previous editorial, Sharma cautioned that governments would fail at controlling cryptocurrencies. He said that one of the government’s strategies for containing Bitcoin is the excessive creation of money, a policy that would fail.
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